Transcript Marketing concept

Marketing: Real People, Real Decisions
Analyzing the Business Environment
Chapter 5
Lecture Slides
Solomon, Stuart,
Carson, & Smith
Your name here
Course title/number
Date
Marketing: Real People, Real Decisions
Chapter Learning Objectives
When you have completed your study of this chapter,
you should be able to:
• Describe the marketing research process.
• Explain the differences between
exploratory, problem-solving, and causal
research, and describe some research
techniques available to marketers.
• Deal with the issues involved in making
sense of research results.
• Discuss how marketers implement
research results
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Marketing: Real People, Real Decisions
Introduction to the Topic
• The topic of marketing research is important
to marketers because of its relationship to the
marketing concept.
• Marketing concept: a management
orientation that focuses on achieving
organizational objectives by understanding
consumer needs and wants and the associated
costs of satisfying them.
• Marketing research is the mechanism by
which marketers find out what consumers
really want, so that they can develop products
or services to satisfy those needs and wants.
• So it would help if we knew something about
this process!
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Marketing: Real People, Real Decisions
Information for Decision Making
• Marketing research: the process of collecting, analyzing, and
interpreting data about customers, competitors, and the business
environment to improve marketing effectiveness.
• We are trying to improve the effectiveness of
our marketing decision making, and we can do
that by getting better information.
• Marketing intelligence: information about
a firm’s external environment, which allows
marketers to monitor conditions that affect
demand for existing products or create demand
for new products.
• Gathering marketing intelligence is an ongoing
process, whereas marketing research refers to
more objective-driven activities.
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Marketing: Real People, Real Decisions
Problem definition
The Marketing
Research Process
Exploratory
research
Secondary
data
Focus
groups
Depth
interviews
Formal
research design
Survey
Experiment
Observation
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Marketing: Real People, Real Decisions
The Marketing
Research Process
Sampling
Probability
Non-probability
Back to
Problem
definition
Data collection
and analysis
Decision making
Conclusion
and report
Storage for future
decision making
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Marketing: Real People, Real Decisions
The Marketing Research Process
• Defining the problem to be investigated is the first step in the
marketing research process. Defining the problem has three
components:
– Specify research objectives
– Identify consumer population
– Assess environmental context
• Finding out what consumers really think about
your products can be a good research objective,
as discovered by Mercedes-Benz.
• Research design: a plan that specifies what
information marketers will collect and what type
of study they will do.
• The first thing to do is to look at what has been
done already, called secondary research.
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Marketing: Real People, Real Decisions
The Marketing Research Process (continued)
• Exploratory research: technique that marketers use to generate
insights for future, more rigorous studies, and to help define the
problem. This type of research produces qualitative data.
• Exploratory research can include secondary research, consumer
interviews, focus groups, case studies, and ethnographies.
• Secondary research: an examination of
research already conducted by others, and other
sources of external information.
• Statistics Canada’s Market Research Handbook is a
good source of information, as are bank web sites,
and marketing research associations.
• It is better to find out what is available before
deciding to conduct one’s own research, to save
time and money.
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Marketing: Real People, Real Decisions
The Marketing Research Process (continued)
• Consumer interviews: one-on-one discussions between a
consumer and a researcher. These interviews can be more in-depth than
telephone surveys and allow for probing further into subject areas.
• Focus group: a product-oriented
discussion conducted among a small group of
consumers led by a trained moderator.
• Focus groups are used extensively by the
advertising industry to develop
communications strategy and test ideas.
• Focus groups are fast ways to collect
information and benefit from the group
atmosphere, however, they must be used with
caution as the results are not necessarily
representative of the overall population
researchers are interested in.
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Marketing: Real People, Real Decisions
The Marketing Research Process (continued)
• Projective techniques: tests that marketers
use to explore people’s underlying feelings
about a product, especially appropriate when
consumers are unable or unwilling to express
their true reactions.
• The difficulty in using projective techniques
comes in interpreting the results, which is
very subjective.
• Case study: a comprehensive examination
of a particular firm or organization.
• Ethnography: a detailed report on
observations of people in their own homes or
communities.
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Marketing: Real People, Real Decisions
The Marketing Research Process (continued)
• Descriptive research: a research tool that probes more
systematically into the problem and bases its conclusions on large
numbers of observations.
• The purpose is to describe a situation or
population of interest at one point in time.
• Cross-sectional design: type of descriptive
technique that involves the systematic collection
of quantitative information at one point in time.
• Longitudinal design: techniques that tracks
the responses of the same sample of respondents
over time.
• Survey: a questionnaire that asks participants
about their beliefs or behaviors via the telephone,
direct mail, computer, or in person.
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Marketing: Real People, Real Decisions
The Marketing Research Process (continued)
• Observational research: a passive research technique where the
behaviour of respondents are observed and recorded, either
mechanically or by an observer. Useful in overcoming self-reporting
bias, but difficult to know why people do the things that they do.
• Causal research: techniques that
attempt to understand cause-and-effect
relationships between concepts.
• Also known as experiments, these
attempt to measure the effect of
manipulating an independent variable on the
dependent variable, while at the same time
controlling for the influence of any
extraneous variables.
• Test marketing is an example.
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Marketing: Real People, Real Decisions
A Standard Experimental Research Design
• Suppose you had a new
cream (treatment) that
you believed would grow
hair on a billiard ball, and
wanted to test it out.
• The only way to know for
sure that it was the cream
that caused the hair growth
would be to compare it to
the amount of hair grown
by two other groups.
• ‘Gotta love that miracle
drug placebo, it will cure
anything!
Choose a sample of people from
the population of interest
Measure the concept of interest
to determine the baseline for comparison
Randomly assign participants to one
of three groups for the experiment
Group 1
treatment
Group 2
placebo
Group 3
nothing
Measure the concept of interest
again to compare change
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Marketing: Real People, Real Decisions
Reliability and Validity
• Reliability: the extent to which research measurement techniques are
free from errors. Reliability is a measure of consistency and it applies
to the measurement instrument.
• Validity: the extent to which research
actually measures what it was intended to
measure. The results are either a valid
measure of the concept of interest, or they are
not.
• Example: a bathroom scale can be a reliable
method of determining your weight, however,
your weight is not necessarily a valid indicator
of your level of physical fitness.
• Note: a research instrument can be reliable but
not valid, but if the results are valid, then they
are by default, reliable.
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Marketing: Real People, Real Decisions
Sampling and Representativeness
• Sampling: the process of selecting respondents who statistically
represent a larger population of interest. How a sample is chosen will
determine how representative they are likely to be of the overall
population.
• Representativeness: the extent to which
consumers in a study are similar to a larger
group in which the organization has an
interest.
• Random sampling is the best method to use
to ensure this is achieved, although variations
of this can also be effective.
• If the sample is representative of the
population of the whole, then we can
generalize the results taken from the
sample to that larger population, otherwise,
we cannot.
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Marketing: Real People, Real Decisions
Gathering and Using Data
• Primary data collection is the process of gathering data yourself
for a specific research project, versus secondary data already gathered
by someone else.
• There are many ways to gathering data, from personal interviews,
mail surveys, observational studies, and even looking in the garbage.
• Single source data:
information that is integrated from
multiple sources to monitor the
impact of marketing
communications on a particular
customer group over time.
• These sources can be coupon
redemptions, sales records, scanner
data and loyalty programs.
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Marketing: Real People, Real Decisions
Gathering and Using Data (continued)
• Data mining: sophisticated analysis techniques that take advantage
of the massive amount of available transaction information.
• Four important applications of data mining:
– Customer acquisition
– Customer retention
– Customer abandonment
– Market basket analysis
• Marketing information system (MIS):
procedure developed by a firm to continuously gather, sort,
analyze, store, and distribute relevant and timely marketing
information to its managers.
• Scenarios: Possible future situations that futurists use to
assess the likely impact of alternative marketing strategies.
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Marketing: Real People, Real Decisions
Famous Last Words…
• Marketing research is an
important activity because
of its relationship to the
marketing concept.
• Marketing research provides
managers with the
information they need to
make better marketing
decisions.
• At least in theory!
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